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Tower deal is still in process: Telkom, Tower Bersama
State-run telecommunications giant PT Telekomunikasi Indonesia (Telkom) and tower operator PT Tower Bersama Infrastructure announced on Wednesday that they had reached an agreement to extend the due date for closing conditions of their share swap agreement
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tate-run telecommunications giant PT Telekomunikasi Indonesia (Telkom) and tower operator PT Tower Bersama Infrastructure announced on Wednesday that they had reached an agreement to extend the due date for closing conditions of their share swap agreement.
The announcement refuted previous information that the share swap agreement had been cancelled.
"Telkom and Tower Bersama have agreed to extend the due date of closing conditions for the share swap agreement from Dec. 31 2014 to the next six months at the latest," Telkom's investor relations vice president Andi Setiawan said in a statement on Wednesday.
With the due date extension, Telkom will have more time to obtain approval from its board of commissioners, which is a prerequisite to continue the share swap deal.
Telkom and Tower Bersama signed a conditional share exchange agreement in October last year, under which Telkom would gradually swap its stake in its tower business PT Dayamitra Telekomunikasi (Mitratel) for a 13.7 percent stake in Tower Bersama.
The state-owned company would also receive cash of up to Rp 1.73 trillion (US$130 million) from Tower Bersama. The additional cash will enable Telkom to increase its stake in Tower Bersama to about 15 percent. (koi)(+++)
